Not sure if I have a hardware or software problem here.

I have run into a problem viewing photos or otherwise high resolution
pictures in Internet Explorer 7 and later 8 after I upgraded to it. These
photos on a webpage will be displayed in a very low resolution, blocky,
blotchy manner while text or line drawings are usually displayed with no
problems. This occured after I had upgraded my motherboard to the fastest
processor the manufacturer said it would accept which was an Intel 3.06Ghz HT
one. Unfortunately I gave the old processor away when I upgraded my uncle's
computer with it and he's out of state. The original processor was not a HT
processor but the computer's manufacturer (a major one - THE major
manufacturer of PCs out there) said this processor was compatible with the
motherboard.

I thought the integrated video card may be the problem as it wasn't all that
great so I put a new one in that doubled the amount of memory and had a
faster processor in it. Unfortunately this didn't change anything. What's
strange is I can have the problem viewing a photo in my ISP's mail website
but not when I download the same photo into Outlook Express and view it
there! Raising the video card's resolution to the highest level doesn't
change anything either as those high resolution pictures on the page are
still out of focus, so to speak.

Does anyone have any ideas what to tackle next with this problem?